Q: In order to stimulate the economy, the Federal Reserve has engaged in a program called quantitative easing. Can you explain how this works? What agency actually issues the bonds? Who buys the bonds and how do they pay for it?
— Sy Richards, Atlanta
A: Quantitative easing (QE) is a policy used by the Federal Reserve to buy assets and flood "financial institutions with capital, in an effort to promote increased lending and liquidity," according to Investopedia.com. QE3, as this round is called, was launched in September 2012 to keep interest rates low and stimulate the housing market. The Fed "essentially creates money from nothing, paying for its purchases by crediting the accounts of banks from which it buys the bonds," Reuters reported. The Fed hopes the banks, flush with cash, will be more apt to lend to companies and people. The Fed is buying $85 billion in bonds every month, and could do so until next spring, CNNMoney reported. That means QE3 could total around $1.6 trillion, Paul Ashworth of Capital Economics told the website.
Q: What happened to Judith Hanson, the executive director of the Atlanta NAACP chapter, who was arrested and charged with embezzlement?
— Elizabeth Johnson, Atlanta
A: Hanson pleaded guilty to a misdemeanor charge of theft by taking in June 2011, The Atlanta Journal-Constitution reported. Hanson was sentenced to 12 months on probation suspended upon payment of restitution and truthful testimony against the indicted co-defendant at trial, according to the Fulton County district attorney's office. Saundra Douglass, who worked as an administrative assistant in the Atlanta chapter, was sentenced to 10 years probation and ordered to repay $31,000 to the NAACP after pleading guilty to theft in September 2011. Hanson and Douglass were charged with embezzling $275,000 from the civil rights organization from 2003-08.
Andy Johnston wrote this column. Do you have a question about the news? We’ll try to get the answer. Call 404-222-2002 or email q&a@ajc.com (include name, phone and city).
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